SANTA MONICA, CA-A private investor has acquired a three-property, rent-controlled apartment portfolio in Santa Monica for $28.5 million. The portfolio consisted of three separate buildings with 66 total units. According to industry sources, Equity Real Estate Group LLC sold the three properties to Thomas Yu.

"To break into that market as far as acquiring properties is very hard to do," Michael Hanassab, an associate at Marcus & Millichap, tells GlobeSt.com. Hanassab represented the buyer along with Marcus & Millichap associate Elliot Hassan. "On the scale of what we sold, which is three separate buildings by one owner all north of Wilshire, which is considered one of the best markets in multifamily in Southern California, it was a rare opportunity." The portfolio sale received 5 to 6 offers from potential buyers, and eventually sold for $1.5 million above the original asking price.

Located at 1033 3^rd St. in Santa Monica, Marvin Gardens is the largest property in the portfolio with 32 units. It was purchased for an estimated $13.8 million, or $431,818 per unit. The portfolio also included the 23-unit La Montana complex, located at 811 6^th St., and a small 11-unit complex located at 1137 11^th St.